The Government has decided not to issue strict regulations to control the deployment of smart electricity meters in people's homes.
The Government says it is committed to extending the use of smart meters but does not want a stringent set of regulations to control that.
Smart meters measure electricity useage and enable the communication of information to electricity companies.
They allow a range of power-saving measures to be easily introduced, such as triggers that turn on appliances only at times when electricity is plentiful and prices low.
However, Parliamentary Commissioner for the Environment Jan Wright said last year that many smart meters being installed are in fact "dumb" because they don't contain a computer chip that allows the meter to relay information to households.
She said their intelligence serves electricity companies mainly, permitting functions such as remote control meter reading and profiling of customer needs for marketing purposes.
Dr Wright said meters could be fitted with microchips allowing them to turn appliances on and off, depending on how dear the power is, saving customers between $25 million and $123 million a year, and urged the Government to look at introducing protocols so the chips become mandatory.
Power companies have said there was no point installing chips in meters yet because smart appliances are not available in New Zealand.
Energy and Resources Minister Gerry Brownlee says the benefits of regulation are not considered to outweigh the costs at this time.
